SHANGHAI: China and Hong Kong stocks rose on Friday and closed the week higher, as Beijing’s campaign against cut-throat price competition lifted investor sentiment.
China’s blue-chip CSI300 Index ended 0.6% higher, while the Shanghai Composite Index gained 0.5%. Hong Kong benchmark Hang Seng was up 1.3%.
The CSI 300 Index has gained 1.1% this week, logging a fourth straight weekly rise, while the Hang Seng Index advanced 2.8%.
China’s top leaders pledged to step up regulation of aggressive price-cutting by Chinese companies, as the world’s second-biggest economy struggles to shake off persistent deflationary pressures.
UBS analysts expect China to intensify its campaign against involution competition over the coming quarters.
However, the path ahead may be more complex than the 2015–16 cycle, when state-owned enterprises led capacity cuts with clearer top-down coordination, the analysts said.
China’s cabinet vowed on Wednesday to rein in what it described as “irrational” competition in the electric vehicle sector, pledging to step up cost investigations and enhance price monitoring.
EV maker Li Auto has climbed around 15% this week, set for its biggest weekly gain since September 2024.
The CSI rare-earth index jumped 3.6% on Friday, with Northern Rare Earth Group up nearly 10%.
Tech majors traded in Hong Kong rebounded more than 5% this week, partly buoyed by optimism after Nvidia said it would ramp up supply of Chinese-compliant H20 chips in the coming months and look to bring more advanced semiconductors to the world’s second-largest technology market.
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